This week, the zinc price fluctuated and rose

According to the data monitoring of the business agency, the zinc price fluctuated and rose this week. As of August 29, the zinc price was 25578 yuan / ton, up 2.47% from 24962 yuan / ton on August 21 last weekend. On August 28, the zinc commodity index was 148.18, which was the same as yesterday, down 9.78% from the highest point 164.25 in the cycle (April 20, 2022), and up 105.01% from the lowest point 72.28 on November 22, 2015. (Note: the period refers to September 1, 2011 to now). With the spread of domestic power rationing, the zinc price is approaching a historical high this week.

Supply and demand of limited film in Sichuan

On August 20, the relevant departments issued an emergency notice again, requiring Sichuan Province (except Panzhihua and Liangshan) to expand the scope of power supply for industrial enterprises to the people, and the power supply restriction period lasted from 0:00 on August 20 to 24:00 on August 25. After the two rounds of power rationing “expired”, the industrial power consumption was restored in succession. However, the zinc smelting industry chain enterprises, as the major users of electricity, have not been restored for a long time. The construction of die-casting zinc alloy enterprises in the lower reaches of the film industry in Zhejiang and other places was limited. The poor export orders caused a large year-on-year decline in the construction of enterprises. The overall supply and demand of the zinc market were weak, and the support for the rise of the zinc market remained.

With the decrease of temperature and rainfall in some areas, the situation of power shortage in Sichuan has been alleviated. On the 28th, the daily power generation capacity of Sichuan Hydropower Station was 460 million kwh, 9.5% higher than the lowest value in the previous period. As of 12:00 on the 28th, the general industrial and commercial power consumption in Sichuan Province has been fully restored. Except for the high load industries, the large industrial power consumption is gradually restored. After the continuous improvement of the incoming water of hydropower, most of the industrial power will be restored to normal. With the continuous support of the State Grid, the contradiction between power supply and demand in Sichuan will be basically solved by the end of August and the beginning of September. With the end of power rationing, the supply and demand of zinc market recovered to balance, and the support of zinc price rise weakened.

Future forecast

Business analysts believe that the continuous domestic power rationing has affected the supply and demand of zinc market. The supply and demand of domestic zinc market are both weak, and the zinc price fluctuated and rose this week. Generally speaking, with the resumption of power rationing, the support of zinc market rise is weakened, the zinc price is approaching the historical high, and the pressure of zinc price decline is increased. It is expected that the zinc price will fluctuate and fall in the future.